Brexit Update 31.01.2020

In this article, I will keep you informed about the latest changes in Brexit.

The UK has now stepped into the 11-month transition period after leaving the EU on 31 January 2020. However, the UK is still expected to abide by the rules of the EU during this period. Because it effectively remains in the single market and the customs union of the EU. Nonetheless, it is no longer part of the political institutions.

BREXIT TIMELINE

  • 31 January: Brexit Day- Trade Talks can begin within weeks
  • 30 June 2020: Deadline for extending the transition period passes
  • 31 December 2020: Has the trade deal been agreed upon and ratified? 
  • If YES: January 2021- Start a new relationship with EU
  • If NO: January 2021- Exit transition without a trade deal. 

Future trade deal

Since the UK is seeking greater access for its goods and services to the EU, their prime concern will be to negotiate a trade deal with the EU. It will be a seemingly uphill task because the government is clear on its stand. Indicating that it is necessary for the UK to leave the single market, customs union and to end the European Court of Justice’s overall jurisdiction.

Time is limited. The EU could take weeks to agree on a formal negotiating mandate. The reason is, the European Parliament and all the 27 member states that remain, have to agree. This only means that formal talks might begin around March. There would be no extension to the transition period since the government has ruled out on that issue.

The UK will face the prospect of tariffs on any exports to the EU if by the end of the year no trade deal would have been agreed on and ratified.

All the negotiations should be straightforward because the UK is fully aligned to the EU rules, as argued by the prime minister.

The issue here is not only sorting out the trade deal but also the UK agreeing to co-operate with the EU on law enforcement and security. The UK will have to agree on a replacement because it is set to exit the European Arrest Warrant Scheme. Furthermore, there is a need to agree on deals with other areas where there is a need for co-operation.

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Stop trying to keep up. Start getting ahead!

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